Zheshang Bank IPO poses big test for market

The lender, potentially targeting some $1.9 billion from the listing, looks set to be Hong Kong's largest bank IPO in more than two years.

China Zheshang Bank started pre-marketing on Wednesday for its initial public offering in Hong Kong, egged on by tentative indications that investors are regaining their confidence as the stock market stabilises.

Based on the bank’s $7.6 billion book value as of the end of last year, the Hangzhou-headquartered bank could raise approximately $1.9 billion, assuming a standard 25% free float. That would make it Hong Kong's largest bank IPO since China Everbright Bank’s...